Japan Security Token Offering Association: The Way of Self-Regulation

Security token offerings, or STOs, have more or less taken the mantle from their semi-defunct counterpart, the initial coin offering.

In 2018, the United States Securities and Exchange Commission seemed to have decided that enough was enough, filing multiple injunctions against what it deemed to be "Unregistered securities." The clampdown had a double-whammy conclusion, simultaneously scaring off investors and disincentivizing projects.

Another probable cause in the downfall of ICOs was the consequent rise of security token offerings.

Myriad issues still plague the regulatory landscape surrounding security tokens.

Looking to quell these concerns is the recently established Japan Security Token Offering Association.

Besides not being the first attempt at self-regulation, the JSTOA isn't even the first shot at forming a security token association.

Holding the accolade for pioneering the idea is the Japan Security Token Business Association.

JSTBA membership already includes some of Japan's notable names, including the cryptocurrency exchange CoinBene and the Japan EOS Developer Association Interestingly, the JSTBA noted that it is open to collaboration with other industry SROs, making it highly likely that there will be some cohesion with the emergent JSTOA. Certainly, uniformity within cryptocurrency regulation would go a long way to remedy the current bottleneck of mismatched regulation.

"Any form of regulation is important for industries that are built on trust - like the financial industry. In the end, it does not matter if it is self-regulation or governmental regulation. Regulation should always aim to best protect investors and be inclusive."

The establishing of concise cryptocurrency regulation stands as an integral part of the proliferation of the industry, and it seems as though change can only come from within.